The government of Israel confirmed Monday that it will treat bitcoin and other cryptocurrencies for the purpose of taxation as property.
confirms previous hints that the IRS will treat cryptocurrencies as property and not as currency and to levy the appropriate tax. The position of the IRS was first described in the draft circular issued
in January of this year.
The circular explains that the profits from cryptocurrency will be taxed on capital gains from 20% to 25%, while individual miners or traders cryptocurrency related businesses, should pay a tax of 17% value-added tax (VAT) in addition to the tax on capital gains. For the first time the government of Israel thinking on the taxation of cryptocurrencies back in 2013.
In the project
the circular that preceded the notice on Monday, also outlining the expected options net ICO projects. Possible steps include the establishment of a minimum threshold of sale of tokens, which come with tax liabilities.